A tentative deal is possible by March, but tensions will likely flare up again.Following the Trump-Xi dinner on 1 December, there are signs of goodwill on both sides, leaving the impression that a ‘mini deal’ is possible before the 1 March 2019 deadline set by the US. This could push back the threat of additional tariffs in the very near term.But we think the devil will be in the details, and particularly in the implementation details. Some sort of hiccup is likely to take place once we...
Read More »China: Little progress in trade talks with US
The likelihood of tariffs has increased. Although there is still room for negotiation, the process could be long and bumpy.A US delegation of Trump’s top economic advisors, led by Treasury Secretary Steven Mnuchin, had a two-day meeting with their Chinese counterparts in Beijing on 3-4 May to discuss the trade issues between the two nations. It appears that the meeting has led to little progress in solving the trade disputes between the two, meaning the trade tensions may persist for quite...
Read More »U.S.-China: Trump’s new approach risks a dangerous confrontation
There is a high risk that tensions between the US and China over the latter’s rise are set to come to a head under Trump’s presidency and become an important source of market volatility.The relationship between the US and China is of vital importance for the world both from an economic and a geopolitical perspective. Competition between the two powers could be set to come to a head under Donald Trump’s presidency. First, the trade relationship with China is a central issue in the Trump...
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